Matchmaking power: Expanding climate finance for off-grid solar electricity
Stockholm Environment Institute
Download
Abstract: This brief explores the development and climate benefits of OGS; the opportunities it represents for climate finance institutions, including multilateral climate finance mechanisms; and the potential impact of new funding sources such as blended finance, carbon markets, and the labelled bond market. The analysis focuses on stand-alone off-grid solar technologies such as solar lanterns, multi-light systems and solar home systems, which together account for about 85% of the global off-grid electricity market. It is based on a comprehensive literature review and interviews with experts. The authors discuss the development benefits of off-grid solar, the climate mitigation benefits, the benefits for adaptation and resilience, investment needs and challenges, and multilateral climate finance, and finally lended finance, carbon markets and bonds.